The Emerging Insurance sector of India.

EXECUTIVE SUMMARY : Insurance sector in INDIA is booming up but not to levelcomparative with the developed economies such as Japan,Singapore etc. Also with the opening of the insurance sector to theprivate players have provided stiff competition resulting into qualityproducts. Also there is a need to restructure the Indian Governmentowned Life insurance Corporation of India so as to maximizerevenue and in turn profits. IRDA regulations and norms for theallocation of funds need to have a comprehensive look. In the phaseof declining interest rates and rising inflation the funds need to beapplied in productive areas so as to generate high returns. Also interms of clients servicing areas such as premium payments, after sales service, policy dispatch, redressal of grievances has to beamended. In the current scenario, LIC has to provide flexible productssuited to the customers requirements. Also a proper and systematicrisk management strategy needs to be adopted. After the increase interrorism and destructive events around the global world such asSeptember 11 attack on World Trade Centre, US Taliban war, US Iraq war etc.. an alternative to reinsurance such as asset backedsecurities is emerging out in the developed economies. Catastrophebonds is one of the alternatives for reinsurance. Finally some policiessuch as pure term and pension schemes needs to be addressed